Upon graduation from high school last summer, Clay Stocks needed a job to earn a portion of his first-year college expenses. He was unable to find anything satisfactory and decided to go into the lawn-care business. He had \(\$ 1,450\) in a savings account that he used to buy a lawn mower and other lawn-care tools. However, to haul the tools from job to job, he needed a truck. Consequently, he signed a \(\$ 2,800\) promissory note that had an interest rate of \(1 \%\) per month in exchange for a secondhand truck.

From the beginning, he had as much work as he could do, and after two months, he repaid the bank loan plus two months' interest. On August 28, he ended the business after exactly three months' operations. Throughout the summer, he followed the practice of depositing in the bank all cash received from customers. An examination of his checkbook record showed he had deposited \(\$ 4,350\). He had written checks to pay \(\$ 180\) for gas, oil, and lubricants used in the truck and mower and a \(\$ 65\) check for mower repairs. A notebook in the truck contained copies of credit card tickets that showed the business owed \(\$ 90\) for additional gas and oil used in the truck and mower. The notebook also showed that customers owed Clay \(\$ 260\) for lawn-care services. He decided to give his lawn-care equipment to his parents, and estimated it had a fair value of \(\$ 500\). He received a good offer on the truck and sold it for \(\$ 3,100\). Under the assumption that Clay had withdrawn \(\$ 600\) from the business during the summer for spending money and to buy clothes, prepare an income statement showing the results of the summer's operations. Also prepare a statement of changes in owner's equity and an August 28 balance sheet. Head the statements Clay's Lawn Service.